Correlation Between An Phat and Book
Can any of the company-specific risk be diversified away by investing in both An Phat and Book at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining An Phat and Book into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Phat Holdings and Book And Educational, you can compare the effects of market volatilities on An Phat and Book and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in An Phat with a short position of Book. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Book.
Diversification Opportunities for An Phat and Book
Significant diversification
The 3 months correlation between APH and Book is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Holdings and Book And Educational in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Book And Educational and An Phat is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on An Phat Holdings are associated (or correlated) with Book. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Book And Educational has no effect on the direction of An Phat i.e., An Phat and Book go up and down completely randomly.
Pair Corralation between An Phat and Book
Assuming the 90 days trading horizon An Phat Holdings is expected to generate 0.59 times more return on investment than Book. However, An Phat Holdings is 1.7 times less risky than Book. It trades about 0.15 of its potential returns per unit of risk. Book And Educational is currently generating about 0.01 per unit of risk. If you would invest 685,000 in An Phat Holdings on October 20, 2024 and sell it today you would earn a total of 39,000 from holding An Phat Holdings or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 36.36% |
| Values | Daily Returns |
An Phat Holdings vs. Book And Educational
Performance |
| Timeline |
| An Phat Holdings |
| Book And Educational |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
An Phat and Book Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Book
The main advantage of trading using opposite An Phat and Book positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Book can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Book will offset losses from the drop in Book's long position.| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. An Phat Plastic | An Phat vs. APG Securities Joint |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |